EDI for Retail / FMCG

The consumer goods industry, also known as the FMCG industry (fast-moving consumer goods), is one of the highest-grossing industries in Austria. It covers all products consumers need on an everyday basis: foodstuffs, personal hygiene articles as well as cleaning products and detergents.

A complex supply chain ensures that these products with quick turnover rates are available each and every day. It connects all participating businesses, including retailers, manufacturers, suppliers, logistics services providers and other companies big or small.

EDI for Retail / FMCG: challenges

All these businesses guarantee that high volumes of merchandise are transported in short periods of time. This translates into short order intervals and short delivery times, which constitutes a significant logistical challenge. Warehouses have to be managed wisely in order to handle repeat orders as efficiently as possible. A wide variety of product types and sizes, packaging, delivery and warehouse conditions (fresh food, frozen food, canned food, etc.) need to be taken into account. In addition, all merchandise must be traceable at all times. For that purpose, all involved business partners rely on their own ERP system, linked to each other via EDI (Electronic Data Interchange).

The benefits of EDI

The FMCG industry has relied on EDI for more than 40 years to meet the challenges described above, with the ultimate goal of swiftly and reliably delivering merchandise of any kind. According to international studies, automated procurement of goods processes supported by EDI save up to 51 euros per ordering cycle. This savings potential is achieved thanks to the following: